L. Hüttinger

Towards a social exchange theory perspective on preferred customership — concept and practice

In the situation of an increase of the role of suppliers, for instance in innovation processes and a scarcity of suppliers, buying firms find themselves in competition for the benevolence of suppliers. In this conference contribution, we introduce the concept of preferred customer status, i.e. a buyer is awarded preferential treatment by its key suppliers when compared to the supplier’s other customers. As there is a lack of knowledge of what motivates suppliers to treat certain buyers better than others, our research focuses on the suppliers’ evaluation of customers and how it can be influenced by buyers. Based on social exchange theory, we propose a conceptual model that contains customer attractiveness, supplier satisfaction and knowledge of alternative customers as factors influencing suppliers to award preferred customer status to a certain customer. Besides, based on a novel World-Cafe method, we show what practices CPOs and consultants experience to be important in increasing attractiveness of customers and satisfaction of suppliers. We conclude by suggesting future research directions in this field.

Exploring the antecedents of preferential customer treatment by suppliers: a mixed methods approach

Purpose – This paper aims to understand the factors that influence a supplier’s choice to treat selected customers more preferentially than others. Suppliers often lack the resources to treat all their customers equally, instead having to make choices to treat some customers as preferred. Empirical evidence indicates that preferential treatment by suppliers provides substantial benefits for the purchasing firm. Design/methodology/approach – This study applies a mixed-methods approach. First, a qualitative analysis of a sample of buyers from an automotive manufacturer was conducted. In the second step, the findings were triangulated via a quantitative survey among key account managers of the automotive firm’s suppliers. Findings – This paper is the first to provide quantitative data collected from a large sample of automotive suppliers about the drivers of preferential customer treatment. The authors were able to show that the growth opportunities for suppliers and customers’ operative excellence, reliability and relational behavior are factors that induce suppliers to award preferential customer treatment. In contrast, innovation potential for suppliers, customers’ support of suppliers, supplier involvement and contact accessibility do not show a significant effect on suppliers’ behavioral intentions toward preferential customer treatment. Originality/value – The mixed-methods approach is introduced as a form of academic enquiry in supply chain management. The factors influencing preferential customer treatment by suppliers are explored in discussions with purchasers and validated in a subsequent survey among suppliers. Recommendations for managerial practice and theory are drawn.